Recording: Fundamentals of Petroleum Refining Economics

January 1, 2100 | ::

0000-refining-economics

The Petroleum Refining Economics course is designed to teach the basic fundamentals of refining technology in combination with essential economics concepts to help participants better understand the main drivers of refinery competitive positioning and financial performance. A technical background is not necessary to understand course materials; the course should be useful to financing or marketing individuals who have some involvement with
refining or petroleum products. Similarly, the course may be helpful to refinery technical staff who are interested in learning how commercial and economic factors drive operating and investment decisions that affect their facilities.

Learning Outcomes

• Review how location, configuration, and crude oil supply contribute to refining profitability 
• Review the nature of petroleum markets, market cycles, and their global interconnectivity 
• Explain how refinery configurations affect petroleum product prices worldwide 
• Discover why refineries prefer different types of crude oils 
• Discuss how refineries can be modified to become more profitable 
• Improve understanding of the role logistics plays in refinery profitability 
• Identify how to interpret published information on the refining industry and refining companies 
• Identify key methods of comparing refinery competitive strength 
• Realize how trends in petroleum demand force refineries to invest 
• Review key issues driving refinery investment in the current market 

Introduction to Refining  

• History of the industry 
• Macro refining trends and drivers 
• Supply chain roles and contributors  

Crude Oil Basics 

• Bulk crude oil property relationships with refining value 
  • Signature properties: API gravity and sulfur content  
  • Other commercial value drivers: distillation range, Total Acid Number, etc. 
• Crude oil assays  
  • Sources and types of assays (commercial / marketing versus project / planning quality) 
  • Interpreting assay data  
• Understanding crude oil supply/demand trade 
  • Regional oil consumption growth  
  • Global crude oil trade flow  
  • Global battle for oil supremacy 

Petroleum Products 

• Product demand trends  
  • Gasoline  
  • Distillate  
  • Fuel oil (IMO 2020 developments)  
• Product specification relationships with value 

Crude Oil and Refined Product Pricing 

• Basic petroleum market pricing concepts 
  • Benchmarks  
  • Quality / location drivers  
  • Crude oil refining values (Gross Product Worth)  
  • Key pricing differentials (light / heavy; sweet / sour, etc.)  
  • Overview of commercial pricing formulas  
• Transportation / logistics costs  
  • Modes of transportation  
  • Worldscale tanker costs and pipeline tariffs  
  • Terminal and handling costs  

Refinery Configurations and Complexity 

• Refinery configuration types  
  • Topping / Hydro-skimming  
  • Cracking / Coking  
  • Relative margins 
• Conversion processes  
  • Hydrocracking / Fluid catalytic cracking  
  • Coking  
  • Vis-breaking / Solvent de-asphalting  
• Upgrading processes  
  • Hydrotreating / Benzene reduction  
  • Catalytic reforming & Isomerization  
  • Alkylation  
• Other processes (offsites, utilities, renewable fuel)

Fundamentals of Refining Economics 

• Fundamentals of refinery economics and margin optimization overview 
  • Markets Price-Setting Mechanism 
  • Economic Evaluation Steps 
  • Linear Programming Basics 
• Financial metrics  
  • Gross, variable, and net margins  
  • Fixed and variable cost development  
• Capital costs  
  • Categories (sustaining, maintenance, environmental / regulatory vs. discretionary) 
  • Replacement Cost New (RCN) estimation and uses 
• Working capital requirements 

Mr. Tod D. McGreevy; Vice President/Director; Muse, Stancil and Co. 

Mr. Tod McGreevy has 30 years of industry experience and a diverse background in petroleum refining and manufacturing. Mr. McGreevy currently serves as Vice President and Director of Muse, Stancil and Co., a global energy consultancy headquartered in Dallas, Texas. He has been with Muse since 2003 and is also a Director of Muse’s Singapore affiliate, Muse, Stancil & Co (Asia), PTE, LTD. During his career, Mr. McGreevy has held various positions that encompass many of the technical/managerial functions found in the downstream sector of the petroleum industry. Previous work assignments have given him a wealth of experience in refinery economics including tactical planning and optimization, long-term, strategic planning, project evaluation, economic justification, and development, budgeting, financial performance measurement and benchmarking, and financial modeling. 

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event

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Recording: Fundamentals of Petroleum Refining Economics

January 1, 2100 |